When navigating the cryptocurrency market it can be difficult to distinguish between the “s— tokens” and tokens that actually provide value through a utility.
Firstly, one must understand the difference between a crypto coin and a crypto token.
A crypto coin can be described as “native” since it exists as the primary currency of its blockchain and does not share its blockchain with any other asset. The first cryptocurrency of its kind was Bitcoin BTC/USD, launched by Satoshi Nakamoto in 2009.
Second, in market cap cryptocurrency Ethereum ETH/USD has a native coin, but it also supports tens of thousands of tokens that have a utility in an ecosystem. A crypto token is a digital asset constructed on a pre-existing blockchain, which is why it cannot be native to a blockchain, rather it can be native to a decentralized project or app.
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Here are three tokens providing a utility by issuing distributions to its holders through rewards and crypto dividends.
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